Led by Alexey Miller, Gazprom’s Management Committee Chairman, Gazprom’s delegation has paid today a working visit to Turkmenistan.

At a meeting between Alexey Miller and Saparmurat Niyazov, President of the Republic of Turkmenistan, the parties discussed issues of cooperation, highly appreciating the results of bilateral interaction and pointing to the reliability of Turkmenistan as a Gazprom business partner.

Alexey Miller and Saparmurat Niyazov emphasized their intentions to expand mutually beneficial cooperation between Turkmenistan and Gazprom. To that end, the parties addressed new forms of cooperation including both Gazprom’s buying into Turkmen gas and participation in gas extraction projects.

Reference:

Russia and Turkmenistan entered into a 25-year Agreement for cooperation in the gas industry on 10 April 2003. In conjunction with the Agreement, Gazexport, a Gazprom wholly owned subsidiary, and the Turkmenneftegaz gas transmission company concluded a long-term Contract for the Turkmen natural gas purchase and sale.

Over 2005 Gazexport acquired from Turkmenneftegaz some 4 bcm of gas priced at US $44 per 1,000 cu m.

On 29 December 2005, in the course of Alexey Miller’s visit to Turkmenistan, the parties agreed to boost gas supply to Gazprom over 2006 up to 30 bcm, fixing the price of Turkmen natural gas at US $65 per 1,000 cu m starting 1 January 2006.

The terms & conditions of joint businesses for 2007 and onwards will be identified in the second half of 2006, as stipulated by the existing long-term Contract.

Turkmen gas is supplied via the Central Asia – Center transit gas pipeline network going through Uzbekistan, Kazakhstan and Russia. In accordance with inter-governmental agreements, Gazprom transits Turkmen gas via Russia to Ukraine and serves as operator of Turkmen gas transit via Uzbekistan and Kazakhstan.